In 1815, Frédéric-Louis Blancpain, the great-grandson of Jehan-Jacques, who was head of the family business at the time, modernized production methods and transformed the traditional craft workshop into an industrial undertaking capable of serial production. By replacing the crown-wheel mechanism with a cylinder escapement, Frédéric-Louis introduced a major innovation into the watchmaking world. In the second half of the 19th century, as industrialization took hold, the prices of watchmaking products were falling and many workshops were fated to close down. To face up to American competition, in 1865 Blancpain built a two-storey factory by the River Suze and made use of water power to supply the electricity needed for its production processes. By modernizing its methods and concentrating on top-of-range products, Blancpain become one of the few watchmaking firms to survive in Villeret. In 1926, the Manufacture entered into a partnership with John Harwood and started marketing the first automatic wristwatch.